Natural Gas Pipelines

Natural Gas Pipelines
Tom Martin
President Natural Gas Pipeline Group
Natural Gas Segment (a)
Growth Drivers:
 Shale-driven expansions /
extensions
 LNG exports
— Liquefaction facilities
— Pipeline infrastructure
 Gas demand for power
generation
— Coal plant retirements
— Regional demand growth
 Exports to Mexico
 Repurposing opportunities
__________________________
(a) Assets scheduled for 2014
dropdown are indicated at the
respective acquiring MLP (i.e., Ruby
and GLNG at EPB).
2
Financial Overview
KM Gas Pipeline Group
2014 EBDDA (KM-share) $ Million
By Region
2014
Budget
West
Central
East
Midstream
1,025.9
194.2
1,803.3
1,285.5
Total
4,308.9
By Entity
2014
Budget
KMI
KMP
EPB
271.3
2,752.3
1,285.3
Total
4,308.9
2014 Highlights





Copano full-year impact
TGP expansions/In-service
Improved Midstream volumes
EPNG contract extensions
SNG/WIC Rate Cases
__________________________
Notes:
EBDDA includes imputed share of JV DD&A less cash taxes (where applicable).
Assumes dropdown of Ruby, GLNG and Young Gas Storage from KMI to EPB.
NGPL JV is included in Central Region / KMI on a cash available for distribution basis after sustaining capital.
3
Contracted Capacity and Term by Region
East
Storage
Transport
LNG
Contracted
Capacity
133 Bcf
17.9 Bcf/d
18 Bcf
West
Storage
Transport
39 Bcf
16.7 Bcf/d
6 yr,
5 yr,
0 mo
6 mo
Central
Storage
Transport
266 Bcf
13.5 Bcf/d
2 yr,
7 yr,
11 mo
0 mo
Midstream
Purchases
Sales
Storage
Transport
Processing
3
2
5
5
7
2
8
7
5
7
Region
2.3 Bcf/d
2.9 Bcf/d
88 Bcf
3.8 Bcf/d
1.7 Bcf/d
Average Term
Remaining
3 yr,
6 mo
8 yr,
10 mo
18 yr,
5 mo
yr,
yr,
yr,
yr,
yr,
Interstate
Transport Contracts
Avg. = 7 yr, 1 mo
mo
mo
mo
mo
mo
 Net annual incremental re-contracting exposure (% of 2014 Gas Pipeline Group MLP EBDDA):
KMP
EPB
2015
<1%
3%
2016
1%
2%
4
Projects Placed Into Service - 2013
5
Copano Acquisition
Copano Asset Overview
- 6,800 miles of natural gas pipelines
- 3.6 Bcf/d of gas throughput capacity
- 460 miles of NGL pipelines
- Nine processing plants
- 1.8 Bcf/d of processing capacity
Expanded midstream footprint
 Broader reach into the Eagle Ford Shale
 Larger starting point in emerging Eaglebine/Woodbine play
 New entry into other rich gas plays
— North Barnett Combo
— Woodford Shale
— Mississippi Lime
— Niobrara
Expanding midstream services
 Now a major player in gas processing
— 1.5 Bcf/d processing complex at Houston Central,
including:
•
•
TXP-2 (400 MMcf/d cryogenic plant placed in service in 2013)
TXP-3 (400 MMcf/d cryogenic plant to be placed in service in
2014)
— Seven processing plants in Oklahoma (236 MMcf/d
capacity)
— Saint Jo plant in the Barnett (100 MMcf/d capacity)
 Other services
— NGL fractionation
— Purity and raw make NGL pipelines
Synergies
 Broader footprint generates opportunities for other parts of the
portfolio (treating, gas chill, etc.)
 Copano G&P experience and expertise applied to other areas of
KM (Altamont, Texas City, Utica, other new areas)
 Cost efficiencies from combining operations in areas of overlap
(apply best practices)
 More diverse skill set and platform for growth
 2013 results exceeded total company acquisition model
6
Gas Pipeline Group Major Projects
7
Region Asset Reviews
East Region Assets (a)
Growth Drivers:
 Asset footprint provides a base for serving
growing and supply-constrained markets
from both traditional and developing supply
regions
 TGP uniquely positioned in growing
Marcellus and Utica shale plays to provide
region-wide access to both Gulf Coast and
Northeast markets
 LDC market opportunities in the U.S. and
Canada, including conversion market in New
England
 New infrastructure required to serve growth
in gas-fired power generation
 Forecast East Region power growth by 2023
for gas = 1.0 Bcf/d (b), driven by:
— Market demand growth in the
Southeast/Northeast
— Economic/environmental replacement of
coal/oil generation
 Positioned to participate in LNG export
market development as both a provider of
pipeline capacity and an export terminal
operator
— Potential to serve 9 Bcf/d of transportation
demand from 5 announced LNG liquefaction
projects near TGP
•
•
Potential expansion opportunities
Additional direct and indirect throughput
opportunities for all KM pipes in the
region
 Opportunities on both TGP and SNG to
provide gas supply for new industrial plant
builds
 Significant storage capacity to supplement
pipeline supply and provide incremental
revenue generating opportunities
Pipeline
Tennessee Gas Pipeline (TGP)
Southern Natural Gas (SNG)
__________________________
Elba Express (EEC)
(a) Assets scheduled for 2014 dropdown are indicated
at the respective acquiring MLP (i.e., Gulf LNG at EPB). Florida Gas Transmission (FGT)
(b) Source: Wood Mackenzie.
Elba Island LNG (SLNG)
(c) Transport / storage.
Gulf LNG (GLNG)
Miles
11,800
6,900
200
5,300
5
Capacity
(Bcf/d)
8.5
3.9
1.0
3.6
1.7
1.5
Storage
(Bcf)
94
64
11.5
6.6
Avg. Remaining
Contract Term (Yrs)
6.6/3.8 (c)
6.8/2.9 (c)
24.2
11.7
18.8
17.8
Effective Date of
Next Rate Case
11/1/2015
9/1/2018
11/1/2014
9
East Region Project Backlog
10
TGP - Utica Backhaul Transportation








Capacity: 400 MDth/d Long-term
100 MDth/d Short-term
Capital: $155.6 MM
Estimated In-service: April 2014
Project Scope: Pipe modifications at 8
compressor stations
Commercial Benefit: Southbound
capacity from Utica Shale to Gulf Coast
markets
Rate: Discounted
Avg. Contract Term: 18 years
Current Status:
—
Open season closed December
2013
—
Awarded capacity
—
Under construction
11
TGP - Rose Lake Project
 Capacity: 230 MDth/d
 Commercial Benefit: Expand TGP’s capacity to
 Capital: $83.0 MM
 Estimated In-service: November 2014
 Project Scope:
— Station 315 - 12,600 HP new compression
— Station 317 - Miscellaneous projectrelated work
— Station 319 - 3,700 new HP; 4,500
replacement HP




transport Marcellus Shale production to Canada
and New England
Rate: Negotiated
Avg. Contract Term: 10 years
Current Status:
— Fully-subscribed
— Pre-construction activities
Major Milestones: Begin construction April 2014
12
TGP - Niagara Expansion









Capacity: 158 MDth/d
Capital: $26.0 MM
Estimated In-service: November 2015
Project Scope:
—
3.1 miles of 30-inch pipe looping
—
Station 229 meter facilities
—
Lease on National Fuel Gas (140
MDth/d)
Commercial Benefit: Provides
additional market for Marcellus gas and
supply diversification for the eastern
Canadian markets
Rate: Negotiated
Avg. Contract Term: 15 years
Current Status:
—
Shipper PA and NFG Lease
Agreement executed
—
Pre-construction activities
underway
Major Milestones: Feb-2014 FERC
filing
13
TGP - Connecticut Expansion Project









Capacity: 72.1 MDth/d
Capital: $76.9 MM
Estimated In-service: November 2016
Project Scope:
—
13.3 miles of pipeline loop
—
Acquisition of Thompsonville
Lateral
Commercial Benefit: Additional
capacity to serve New England market
Rate: Negotiated
Avg. Contract Term: 15 years
Current Status:
—
Contracts executed
—
Lateral acquired
—
FERC pre-filing activities
underway
Major Milestones: Jun-2014 FERC
filing
14
TGP - Cameron LNG









Capacity: 900 MDth/d
Capital: $138.4 MM
Estimated In-service: Q4 2017
Project Scope:
—
Compressor station modifications
to accommodate bi-directional flow
—
18,000 HP of new compression
—
New pipeline laterals for enhanced
supply access to the Perryville Hub
Commercial Benefit: Supply from multiple
sources for LNG export
Rate: Negotiated
Avg. Contract Term: 21 years
Current Status:
—
PAs executed
—
Cameron LNG facility is now first in
the non-FTA queue
Major Milestones:
—
April 2014: Final EIS
—
July 2014: FERC Certificate
expected; Non-FTA approval
expected from DOE
15
SNG / Elba Express Expansion









Capacity: 333 MDth/d
Capital: $168.0 MM (a)
Estimated In-service: June 2016
Project Scope:
—
Compression on SNG and EEC
—
Additional pipeline and other
facilities
Commercial Benefit: Additional access to
Marcellus/Utica shale gas for existing and
new SNG customers
—
Seamless transport on SNG from
supply to market
—
Access to secondary receipt points
on SNG system
—
Replacement supply for LNGdependent markets
—
Offers incremental supply for new
demand
Rate: Negotiated
Avg. Contract Term: 15 years
Current Status: Successful open season
completed; PAs executed
Major Milestones: Jul-2014 FERC filing
__________________________
(a) Does not include the cost ($111.2 MM) for the component of the EEC expansion serving Elba Liquefaction. The total cost for the expansion of both SNG and
EEC is $279.2 MM.
16
Liquefaction at Elba Island
Elba Liquefaction Company (ELC) / SLNG


Capacity: 350 MMcf/d (Phase I & II(a))
Capital (KM-share, $MM): Phase I
ELC (KM 51%)
$533.0
SLNG (KM 100%)
271.0
EEC (KM 100%)
79.9
Total
$883.9
Phase II(a)
$224.4
31.3
$255.7
(a) Based on 4 units





Current Status:
—
Agreements executed with Shell
—
DOE FTA export authorization received; nonFTA application filed (currently 8th in queue)
—
Shell elected to go forward with Phase II (2
units)
Major Milestones: March 2014: FERC filing


Estimated In-service:
—
4Q 2016 (Phase I)
—
2017/18 (Phase II)
Project Scope:
—
ELC: Facilities for liquefaction
—
SLNG: Ship loading facilities; boil-off gas
compression
—
EEC: Compression to reverse flow from
Transco
Commercial Benefit:
—
Not contingent on further DOE approval
—
Gas supply via EEC for U.S. production from
various supply regions
Tariff Rate: Calculated based on actual costs
Avg. Contract Term:
—
EEC: 24 years
—
Liquefaction: 20 years
17
East Region
Additional Potential Growth Projects

Additional Marcellus / Utica Project Opportunities
—
Enormous production increases in these two areas will provide expansion and greenfield
opportunities to move more gas into the Northeast and significant quantities south to the
demand centers on the Gulf Coast
•
•
•

Northeast Gas/Electric Initiatives
—
New infrastructure is needed in the Northeast for load growth in gas and power markets
•



Additional Marcellus/Utica southbound expansion on TGP
Marcellus project on TGP to the Northeast at Wright
Greenfield project from Utica for larger volumes
Northeast Expansion Project
Southeast Power and Industrial Growth
—
Power growth in the Southeast U.S. continues to be an opportunity for SNG
—
TGP and SNG both continue to have inquiries from the industrial sector for new plant builds
LNG Exports
—
Gulf LNG liquefaction expansion
—
Freeport LNG
Repurposing Opportunities
—
Conversions for NGL service
—
Rich gas service for Utica Shale
Opportunity to invest up to $7.7 billion beyond the current backlog
18
East Region Growth Opportunity
TGP Northeast Expansion

PNGTS & M&NP Joint Facilities


Wright
TGP Northeast Expansion
Dracut
M&NP

TGP

Algonquin


Capacity: 1.0+ Bcf/d
Capital: Approx. $1.75 - $2.75 B
Estimated In-service: November 2018
Project Scope:
—
Approx. 175 miles of greenfield
pipe for connection to TGP and
M&NP
—
Compression
—
Laterals as necessary to serve
customers
Commercial Benefit: Additional gas
supply for pipeline-constrained New
England market
—
LDCs pursuing fuel oil
conversion market
—
Power generators seeking firm
gas transportation
Rate: Negotiated
Current Status: Actively pursuing
commitments from LDCs and power
generators
19
West Region Assets (a)
Growth Drivers:
 Large asset footprint provides
numerous opportunities for
expansion capital investment
 West Region pipelines reach
back to all Rockies Basins.
— Growing liquids and oil
production is creating
expansion opportunities for
associated gas and
conversions
 Competitive expandability and
market leading connectivity for
increased deliveries into
Mexico for its growing reliance
on natural gas
— Total exports to Mexico
forecast at 4-6 Bcf/d by 2025 (b)
— 2013 deliveries to Mexico:
• 740 MDth/d, West Region
• 1,800 MDth/d, KM-total
— For all KM regions: Backlog &
add’l growth project export
capacity @ 1.5-4.0 Bcf/d
 Western states’ pursuit of
renewable energy creates
growth for greater gas-fired
power generation backstop
— Forecast West Region power
growth by 2025 for gas = 1.0
Bcf/d (c). Driven by:
• Economic/environmental
replacement of coal/oil
generation
• Market demand growth
 Declining Canadian imports
positions West Region pipes
well for incremental growth
 Significant storage facilities
with superior connectivity
provide premium services
ranging from interruptible to
firm services
__________________________
(a) Assets scheduled for 2014 dropdown
are indicated at the respective
acquiring MLP (i.e., Ruby at EPB).
(b) Source: Wood Mac & internal analysis
(c) Source: Internal analysis
(d) Transport / storage
Pipeline
Ruby
El Paso Natural Gas (EPNG, incl. Mojave)
Colorado Interstate Gas (CIG, incl. Young Gas Storage)
TransColorado (TCGT)
Wyoming Interstate (WIC)
Cheyenne Plains (CP)
Miles
680
10,700
4,250
310
850
410
Capacity
(Bcf/d)
1.5
5.6
4.6
1.0
3.7
1.1
Storage
(Bcf)
44
43
-
Avg. Remaining
Contract Term (Yrs)
9.2
4.8
6.5/6.0 (d)
2.4
5.2
4.0
Effective Date of
Next Rate Case
NA
Ongoing
10/1/2016
NA
NA 20
NA
West Region Project Backlog
21
EPNG - Sierrita Pipeline


Arizona

Tucson
Tohono
O’odham
Indian Res.

Sierrita
Buenos Aires
Nat’l Wildlife
Refuge
Sonora


Puerto Libertad
Pipeline


Gulf of
California
Expansion Pipelines

Capacity: 204 MDth/d
Capital (KM-share): $71.5 MM
Estimated In-service: Phase I: October 2014
Project Scope:
—
Sierrita Pipeline Co. – JV, Kinder Morgan
35% ownership interest and operator
—
60 miles of 36-inch pipeline west of Tucson
to border near Sasabe
Commercial Benefit: Low-cost gas supply for
future gas-fired generation, displacing current oilfired generation
Rate: Max recourse for lateral
Avg. Contract Term: 25 years
Project Status:
—
DEIS comment period closed December
2013
—
Response to DEIS comments filed
December 2013
Major Milestones: June 2014: Estimated start of
construction
22
CIG - High Plains Expansion

Capacity: 600 MDth/d

Capital (KM-share): $11.2 MM

Estimated In-service:

—
November 2013 (DCP)
—
July 2014 (Anadarko)
Project Scope:
—
8 miles of 24-inch pipe, regulation,
and metering at Cheyenne into WIC
—
Lancaster Meter Station (Anadarko)
and LaSalle Meter Station (DCP)

Commercial Benefit: Joint venture
expansion with Xcel to move growing DJ
Basin supply to Cheyenne WY Hub

Rate: Max tariff for High Plains

Avg. Contract Term: 10 years

Current Status: DCP in-service
23
CIG - DJ Basin Project

Capacity: 100 MDth/d

Capital: $14.7 MM

Estimated In-service: Q1 2015

Project Scope:
—
Connect 7.6 miles of pipe to CIG for
$12.0 MM
—
Build 3.3 miles of 16-inch pipe to CIG
High Plains
—
Metering

Commercial Benefit: Project to connect
processing plant within the DJ Basin to CIG
and High Plains

Current Status: Customer negotiations
ongoing
24
West Region
Additional Potential Growth Projects

Growth in exports to Mexico
—
Total incremental Mexico growth by 2025 projected up to 2.1 Bcf/d that can be served from the EPNG
footprint
•
•

Dramatic growth in unconventional oil and liquids production
—
Growing Permian production creates oil conversion opportunities on EPNG (Freedom Pipeline)
—
Dry to wet service conversions
•
•

Incremental power generation demand growth on Willcox, Samalayuca laterals and Sierrita
Creates opportunity “above and beyond” current planned capacity additions
Niobrara shale (Powder River Basin and DJ Basin)
Tight gas sands (Wind River Basin and Uinta Basin)
Growing demand for natural gas in power generation and industrial sectors
—
Additional markets in Desert Southwest (coal-to-gas conversions, power plants, and LDCs)
—
De-emphasizing nuclear exacerbates need (San Onofre Nuclear Generating Station)
Opportunity to invest up to $5.6 billion beyond current backlog
25
West Region Growth Opportunity
Mexico Incremental Gas Demand Potential
Key
Demand Type
Est. Avg.
Daily Gas
No. of Capacity Demand
Projects (MW) (MMcf/d)
Electric Gen Conversions
7
4,241
534
Electric Gen New Builds
12
8,493
1,070
Industrial Potential
Total Incremental Mexico Demand Potential
513
2,117
 Capital: $240MM - $2.8B
 Estimated In-service: Staged over the
next 15 years
 Commercial Benefit: Opportunity for
additional contracting and expansion of
the EPNG pipeline system to serve
growing demand for natural gas from
industrial and electric generation projects
26
West Region Growth Opportunity
CIG Powder River Lateral Conversion to NGL Service





Capacity: 60-100 MBbls/d
Capital: $75-100MM
Estimated In-service: 2015
Project Scope:
—
Conversion of 16-inch lateral to
liquids service
—
Connect with Overland Pass
Pipeline at Laramie
—
Requires pump and meter
stations
—
New processing plants in
Douglas area provide opportunity
for liquids takeaway
Commercial Benefit: Repurposing to
NGL service
27
Central Region Assets
Growth Drivers:
 Large and strategic asset
footprint near major shale plays
and supply basins provides
opportunities to attach new
supply
 Potential to serve 10 Bcf/d of
transportation demand from 5
announced LNG liquefaction
projects along the Gulf Coast
near NGPL and KMLP
— Potential expansion
opportunities
— Additional direct or indirect
throughput opportunities for all
KM pipes in the region
 Well-positioned to serve growth
from existing and new gas-fired
electric generation
 Forecast Central Region power
growth by 2023 for gas = 2.3
Bcf/d (a). Driven by:
— Economic/environmental
replacement of coal/oil
generation
— Market demand growth
 Potential new end-user
markets: GTL plants, petchem
and other industrial projects
__________________________
(a) Source: Wood Mackenzie
(b) KMI has 20% interest in NGPL
(c) Market Area deliverability
(d) Transport / Storage
Pipeline
Natural Gas Pipeline Co. of America (NGPL(b))
Midcontinent Express (MEP)
Kinder Morgan Louisiana Pipeline (KMLP)
Fayetteville Express (FEP)
Miles
9,200
510
135
185
Capacity
(Bcf/d)
5.0 (c)
1.8
3.2
2.0
Storage
(Bcf)
282
-
Avg. Remaining
Contract Term (Yrs)
2.6/2.9 (d)
5.3
15.7
7.2
Effective Date of
Next Rate Case
NA
NA
NA 28
NA
Central Region Project Backlog
29
Central Region Opportunity
KMLP - LNG Liquefaction Transport Project








Capacity: 700 MDth/d
Capital: $129.1 MM
Estimated In-service: 4Q 2018
Project Scope:
—
Kinder Morgan Louisiana
Pipeline converted to a bidirectional pipe
—
Located in Calcasieu and Acadia
Parishes, Louisiana
Commercial Benefit: Provides LNG
liquefaction projects with access to
multiple pipelines to ensure deliveries of
gas supply at competitive rates
Term: 20 years
Project Status: Developing Precedent
Agreement with potential counter parties
Major Milestones:
—
Feb. 2014: Preliminary
discussion
—
Late 2015: FID expected
30
Central Region
Additional Potential Growth Projects

LNG Liquefaction Opportunities
—
LNG liquefaction projects moving forward in South Texas/Louisiana provide potential expansion
investment opportunities on both NGPL and KMLP

Future Power Plant Load
—
Continue to work with power plants identified near NGPL and MEP for new interconnect and
transport capacity
—
NGPL in a position to offer competitive transport options

Repurposing Opportunities
—
Evaluating conversion to crude service on Louisiana system

Industrial Market Growth Opportunities
—
GTL and petchem facilities on Gulf Coast for NGPL and KMLP
Opportunity to invest up to $600 million beyond current backlog
31
Central Region Growth Opportunity
KMLP - LNG Liquefaction Transport

Capacity: 0.7-1.9 MMDth/d

Capital: $70-350MM

Estimated In-service: Late 2018

Project Scope:
—
Kinder Morgan Louisiana
Pipeline converted to a bidirectional pipe
—
Located in Calcasieu and Acadia
Parishes, Louisiana

Commercial Benefit: Provides LNG
liquefaction plant access to multiple
pipelines to ensure gas supply at
competitive rates

Project Status: Developing Precedent
Agreements

Major Milestone: Late 2015: FID
expected by customers
32
Midstream Assets
Growth Drivers:
 Large asset footprint provides continued
expansion capital investment
 Copano acquisition provides expanded
footprint and midstream services while
leveraging G&P experience and expertise
across portfolio of KM assets, including
the development of new NGL initiatives
 Competitive expandability and connectivity
for increased deliveries into Mexico for its
growing reliance on natural gas (Texas
Intrastate)
 Significant storage positions and
connectivity provide array of premium
services, including load balancing to
power and end use markets (Texas
Intrastate)
 Investments/acquisitions of gathering
systems, storage facilities and processing
facilities
 Potential to serve 4 Bcf/d of transportation
demand from 2 announced LNG
liquefaction projects along the Gulf Coast
near TX Intrastates
—
Potential expansion opportunities
—
Additional direct or indirect throughput
opportunities for all KM pipes in the region
Limited Commodity Exposure
 Processing exposure:
—
$1 change in WTI
•
•
—
$2.1 MM/yr (excluding hedges)
$0.7 MM/yr (including hedges)
1% change in NGL crude ratio
Treating
Processing
Capacity
Capacity
Pipeline Miles
Pipeline Capacity
Storage
5,800 miles
5.5 Bcf/d
118 Bcf
1,680 GPM
85 MMcf/d
80 miles
325 MMcf/d
95 miles
425 MMcf/d

480 miles
2.0 Bcf/d
2,600 GPM
— $0.50/Dth gas price change
700 MMcf/d - gas
390 miles - gas
Eagle Hawk Gathering
110 MBbl/d – condensate
• $9.0 MM/yr (excluding hedges)
60 MBbl
270 miles - condensate
Red Cedar Gathering
755 miles
800 MMcf/d
4,600 GPM
• $0.3 MM/yr (including hedges)
70 miles - gas
150 MMcf/d - gas
— < 0.3% of Gas Pipeline Group annual EBDDA
Camino Real Gathering
(excluding hedges)
70 miles - oil
110 MBbl/d – oil
20 MBbl
__________________________
Altamont Gathering
650 miles
75 MMcf/d
80 MMcf/d
(a) Minimum volume commitment of 1 Bcf/d
6,800 miles – gas
3.6 Bcf/d
1.8 Bcf/d
Copano
expires in May 2015. Current throughput
460 miles – liquid
115 MBbl/d
is ~0.6-0.7 Bcf/d.
Treating - Leased Units 98 plants in service – Amine; 153 plants in service – MRU; 20 plants in service - Dew Point
•
•
$2.2 MM/yr (excluding hedges)
Asset
$0.7 MM/yr (including hedges)
Intrastate Pipelines
— < 0.2% of Gas Pipeline Group annual EBDDA North Texas Pipeline
(excluding hedges)
Mier-Monterrey
Gas price exposure:
KinderHawk Gathering
Avg. Remaining
Transport Contract Term (Yrs)
3.4
19.6
4.2
Life of Lease (a)
Life of Lease
4.4
9.0
9.0
7.3
6.5
8.6
33
Midstream Project Backlog
34
Mier Monterrey Expansion






Capacity: 215 MMcf/d
Capital: $126.3MM
Estimated In-service:
—
September 2014
(compression)
—
January 2015 (conditioning
plant)
Project Scope:
—
Compressor station (U.S.)
—
Conditioning plant (U.S.)
—
Webb 14-inch pipe
replacement (U.S.)
—
Leased compression (Mexico)
Commercial Benefit: Additional
deliverability into Mexico for growing
U.S. supply
Current Status:
—
Open season capacity fully
subscribed
—
Under construction
35
Calpine Magic Valley

Capacity: 90 MDth/d

Capital: $26.4MM

Estimated In-service: March 2014
(compression)

Project Scope: 23 miles of 16-inch
pipe, compression and meter

Commercial Benefit: Provides
additional capacity to serve power
plants in deep south Texas

Current Status:
—
Executed 90 MDth/d transport
agreement and storage
agreement in 1Q 2013
—
16-inch lateral and meter placed
in service in 4Q 2013
—
Compression: under construction
36
DK Expansion (incl. TXP3)






Capacity: 400 MMcf/d
Capital: $250.1MM
Estimated In-service:
—
June 2014 (pipeline)
—
July 2014 (plant)
Project Scope:
—
400 MMcf/d cryogenic plant
—
8 miles of 24-inch pipe
—
6,720 HP compression
Commercial Benefits:
—
Expands gathering and
processing capacity in the Eagle
Ford Shale
—
Substantial capacity increase by
combining Copano and Intrastate
networks
Current Status: Under construction
37
Eagle Ford Fractionation Outlet






Capacity: 30 MBbls/d
Capital: $20.0MM
Expected In-service: 3Q 2015
Project Scope: 26 miles of 12-inch
pipeline from Markham to a NGL
fractionator near Sweeny, TX
Commercial Benefits:
—
Provides economic outlet for
NGLs produced from expanded
Houston Central Plant
—
Provides up to 20 MBbls/d of
fractionation capacity effective
July 2014
Current Status: Definitive agreements
executed in January 2014
38
Eaglebine Project






Capacity: 45 MMcf/d
Capital: $24.3MM
Estimated In-service: 3Q 2014
Project Scope:
—
Convert 50 miles of existing
pipeline for rich gas service
—
100 GPM amine treater and
dehydration unit
—
3 gas chill units (15 MMcf/d
each)
—
6.5 miles of natural gas pipelines
—
4-mile Y-grade pipeline
Commercial Benefit: Provides interim
solution for producers to test acreage
prior to building a cryogenic plant
Current Status: In negotiations with
producers
39
Midstream
Additional Potential Growth Projects

Exports
—
Electric generators in Mexico are looking towards natural gas to fuel new plants to meet growth and
replace other fuels such as oil
—
Proposed LNG liquefaction projects in South Texas

Processing and Gathering
—
Continued growth in shale plays provides new opportunities for Kinder Morgan’s Midstream
businesses
—
Kinder Morgan Utica Project
—
Continued leveraging of Copano’s gathering and processing experience and expertise to expand
footprint and services, including the development of new NGL initiatives

Industrial Load Growth
—
Texas Intrastate systems continue to have inquiries from the manufacturing sector for brownfield and
greenfield plant expansions

Storage Expansions
—
Further enhancements to West Clear Lake storage facility
—
Expansion of existing or development of additional caverns at Dayton storage facility
Opportunity to invest up to $1.0 billion beyond current backlog
40
Midstream Growth Opportunities
Gulf Coast LNG Opportunities
LNG export terminals announced to come
on-line in 2017-19 along the Texas Gulf
Coast:

Golden Pass LNG (Sabine Pass, TX)
—
2.1 Bcf/d

Freeport LNG (Freeport, TX)
—
2.1 Bcf/d

Excelerate (Lavaca Bay, TX)
—
Small scale floating LNG process
—
1.4 Bcf/d

Cheniere LNG (Corpus Christi, TX)
—
2.1 Bcf/d

EOS LNG (Brownsville, TX)
—
Small scale floating LNG process
—
1.6 Bcf/d
41
Gas Pipeline Group Growth Outlook
42